Crude Oil Price Analysis – Oil Trying to Breakout on Wednesday

WTI Crude Oil Technical Analysis

The light sweet crude oil market has rallied a bit in the early hours of Wednesday trading as we are threatening to break above the crucial $66 level. I do think essentially what’s going on here is people are just waiting to see if the Americans will attack the Iranians, and they, of course, are worried about oil supply and the Straits of Hormuz being shut down, although one would assume the US Navy would get involved.

That being said, I think it’s also worth noting that every time this happens, nothing happens, and then we end up falling right back over. We could break towards the $70 level, maybe even as high as $75, only to tumble right back down. It does look like a buy on the dip market at the moment, though, as we have seen time and time again.

Brent Technical Analysis

Brent markets are doing everything they can to break above the $70 level and, in fact, are above the $70 level as I record this. If we can continue to the upside, I think you have a real shot at this market going to the $73 level, maybe even the $76 level. Short-term pullbacks continue to offer buying opportunities with the 200-day EMA near the $66.50 level as a bit of a floor. All things being equal, this is a market that I think continues to be very noisy, but I also recognize that it’s very difficult to short this market right now, as there seems to be so much in the way of resilience.

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